Marcel Landry founded Medifice in 1976 and had been running and growing the business for over four decades. In recent years, however, he began looking at succession planning. His company, which specializes in building and managing healthcare facilities, had experienced robust growth since its inception and was now recognized for its active role in developing advanced healthcare infrastructure across the province.
In the summer of 2017, Landry decided it was time to seize market opportunities and slow down a bit, so he started putting his plans in motion. That’s when he approached the three young candidates he had in mind to take over, and told them: “I think I’m ready to sell you my business.”
Although the three of them barely knew each other, they were drawn together by similar ambitions. “We weren’t friends teaming up to start a business. Our lives ran in parallel, but we all knew Marcel. That’s the one thing we had in common,” says Maxime Di Patria, one of the three buyers, currently Partner and CFO of Medifice.
Jean-Simon Masse came from the construction industry, where he had started out as a construction worker before moving to administration. He had been working with Landry for several years. Frédérick Gariépy had worked in real estate for over 10 years and brought both “boots on the ground” know-how and actual entrepreneurial experience to the table. Maxime Di Patria, who had previously worked for larger organizations, rounded out the trio, providing financial and investment expertise.
“The great thing about Marcel is that he’s always been there for young people, helping them grow and supporting them as they went into business. Everything he’s done in life has always revolved around that. He said to himself: Maxime will manage finance and operations, Jean-Simon will oversee the construction side of things, and Frédérick will handle development. Together, they will help Medifice grow, and I’ll be able to retire quietly when the time comes,” says Frédérick Gariépy, Partner and Vice-President, Development.
There was another challenge, however. All three potential buyers had to agree for the deal to go ahead. “We each wanted it to happen. The idea was to see if we were all on the same page. If there had been only two of us, the dynamic wouldn’t have been the same. We didn’t discuss details and percentages. Instead, we looked at things like: What do we want to do in life? What are our values? Do we want to make a profit and sell in five years, or do we want to own a business for the next 30 years?” says Jean-Simon Masse, Partner and Vice-President, Construction.
“We all had different goals, but we soon realized that we each wanted to work on meaningful projects that would change communities for the better. We each wanted to create buildings that would help provide better services to the public—buildings that we could show our children 10 years from now, saying: ‘I built that,’” adds Di Patria.
A few months later, the deal was done and Medifice welcomed three new partners: Jean-Simon Masse became Partner and Vice-President, Construction; Frédérick Gariépy, Partner and Vice-President, Development; and Maxime Di Patria, Partner and Chief Financial Officer. A new entity was created to oversee the construction, development and management of new projects. Landry stayed on as CEO and retained a 50% stake in the company, while the remaining 50% was distributed among the three new shareholders.
It was a winning formula that enabled Medifice to grow exponentially. Within seven years of the three new partners joining, the team had expanded to five times its original size, while sales revenue had increased tenfold.
“Today, we’re running Medifice together, and I’m proud to see how our partnership has strengthened our position in the market. The decision has enabled Medifice to expand considerably and do more to provide more services to Quebecers,” says Marcel Landry, founder of Medifice.
Each year, over 600,000 people walk through the doors of Medifice buildings to receive the services they need.
A visionary founder and a strong new leadership team
Medifice owes its success to its visionary founder and the structured approach taken by its carefully chosen, balanced leadership team.
With a rapidly aging population and a growing number of baby boomers looking to retire, businesses have been hitting the market at a steady clip.
In Quebec, 9% of SME owners are planning to sell or transfer their businesses, according to a study conducted in early 2024 by the Centre de transfert d’entreprise du Québec. Most entrepreneurs, however, have no succession plans or prospective buyers lined up, and that could jeopardize both the long-term viability of their businesses and economic growth in Quebec.
Medifice took a proactive and strategic approach to succession planning—unlike many companies that see it as a low priority and sometimes keep postponing it, potentially running into serious obstacles down the road. Landry’s decision to bring new partners on board was the result of careful consideration. By 2014, with Medifice gaining momentum and projects becoming increasingly complex, Landry realized he needed support.
Faced with the choice of selling his business to a Canadian-owned company or trying to build a new leadership team, Landry opted for the latter. He took the path that required more effort, but that choice would really pay off in the long run.
“I’ve always been deeply invested in the future of Medifice. That’s why I decided to bring in three young professionals I had connected with throughout my career. Selling my business was never an option. I’ve always believed in supporting up-and-coming talent, so I gave those young people the opportunity to lead and grow the business.”
Marcel Landry
Founder, Medifice
“Marcel found us, recognized our strengths and saw how well we complemented one other, so he passed the company on to us under very favourable terms that no other offer could have matched. It’s his vision that brought us to where we are today,” says Di Patria.
“In the early days, we would handle every possible aspect of the business down to the smallest detail as best we could,” says Di Patria. “But we knew our role was to set up procedures, really making sure the business moved toward greater professionalism, with faster, more structured growth.”
In 2019, the new leadership team bought half of the remaining shares held by Landry, and the four became equal partners.
From left to right: Maxime Di Patria, Jean-Simon Masse, Frédérick Gariépy and Marcel Landry.
Managing emotions and finding the right people
As with any change of ownership process, the transition at Medifice came with its own set of challenges. The first challenge, following the 2017 deal, was to change the business structure and convert the sole proprietorship to a company with four shareholders.
For Landry, that meant relinquishing his role as the sole decision maker—a role he had held for over 40 years. For the three new partners, it meant finding their own ways of doing things and managing the company’s rapid growth, while acknowledging that the founder was letting go.
“In business, there’s a limit to how tough the work gets. The real challenge lies in managing the emotional dynamics among partners,” says Masse.
“Picture this: four different people, each with a different background. We didn’t think the same and didn’t talk the same. But we had to constantly make sure our personal and professional goals were aligned so the four of us could move forward together. That was one of our biggest challenges.”
Maxime Di Patria
Partner and CFO, Medifice
The four partners enlisted industrial psychologists and consultants specializing in ownership transition to help them manage the human and emotional aspects of the process, organize themselves, and define a strong mission and vision for the future of Medifice.
So what is the team’s greatest strength? “We’ve always put the business before our personal needs, and we’ve managed to find a fair and respectful approach for everyone to help us get through the ups and downs,” says Di Patria. “We’ve all learned something different from Marcel. He rounds out our team. He’s our mentor and go-to person on many issues, not just business.”
Sharing the same values
With a portfolio of several dozen buildings, Medifice handles all aspects of a project, from financing and development (concept and design) to construction and building management. That strategy has enabled the company to maintain a broad perspective and exert greater control over quality and costs.
The fact that the founder and the three new shareholders share common values, such as making a difference, giving back and helping others, has also played a crucial role in the transition.
“At Medifice, we create buildings that meet real needs and make a real difference in people’s lives. Everything we do is designed to improve living conditions in our communities. And that’s not just a catchphrase—it’s really what the company is all about,” says Gariépy.
A promising future
After consolidating its position as a leader in assisted living facilities for seniors, the company expanded into new areas beyond its initial focus in health care. “We’re using our expertise to deliver customized real estate solutions. We build social infrastructure to meet the need for basic services in communities,” says Di Patria.
One of the latest projects completed by Medifice is Pôle santé Saint-Jérôme—a development of over $100 million, featuring a medical complex designed to serve over 150,000 patients per year, a 112-bed long-term care facility, an outpatient centre affiliated with the Saint-Jérôme hospital, and a specialized medical centre with seven operating rooms.
Another project, currently being developed, is the Université du Québec à Trois-Rivières campus in Terrebonne, with completion scheduled for 2025.
Given the massive need for social infrastructure across the province, Medifice is positioning itself for sustained growth so it can continue to play its part in helping municipal, provincial and federal governments to better serve the population. The company’s vision is to become Canada’s largest developer and owner of positive-impact buildings by 2040.
“We’re a solid, close-knit team. We’re all working toward the same goal, and that’s key here. When the time comes, Marcel can retire with a clear conscience, knowing that we will continue the work he started and that the company’s mission—to improve living conditions in our communities—will remain at the core of everything we do,” says Di Patria.
